EU Nations Seek Mercosur Trade Deal Amid U.S. Tariff Tensions

France held a meeting with 10 EU countries discussing a trade deal with Latin America's Mercosur bloc. This move follows U.S. tariffs affecting European exports. The meeting aimed to include an escape clause to protect EU farmers from unfair agricultural competition, highlighting the need for diversified trade partnerships.

In response to the United States' recent trade measures, France convened a meeting with ten EU countries to discuss a potential trade agreement with Latin America's Mercosur bloc. This meeting marks a significant shift for countries that previously opposed the deal, as it offers a strategic alternative to offset the economic impacts of U.S. tariffs.

Benjamin Haddad, Minister Delegate for Europe, spearheaded the discussion, advocating for an automatic escape clause in the proposed agreement to shield EU agriculture from competitive pressures. "In today's geopolitical landscape, diversifying trade relationships is crucial," a representative from Haddad's office informed Reuters. Yet, the participating nations voiced concerns over an imbalanced deal that fails to safeguard their farmers.

This clause aims to serve as a fail-safe, activating when unexpected import surges threaten EU market stability. Despite the European Commission's prior efforts, there is a concerted push to negotiate a viable compromise that strengthens economic ties with Latin America, especially amid dwindling markets due to U.S. policies.

(With inputs from agencies.)